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Student Outcomes May Determine Fate of Online and For-Profit Programs in Wisconsin

The Wisconsin Education Approval Board, which oversees all for-profit colleges located in the state and any online-learning programs offered to its residents, may require that those institutions achieve specific performance standards in order to operate within Wisconsin. Specifically, that board is proposing to require that at least 60 percent of a college鈥檚 students complete their studies within a certain time-frame and at least 60 percent of its graduates have jobs.听 Public universities and private nonprofit colleges are not under the board鈥檚 jurisdiction and would therefore be exempt from the requirements.

The board already collects and publishes data on its institutions. According to those reports, average completion rates fell from 82 to 59 percent over the last six years and the percentage of graduates who were employed during a given year dropped from 44 to 22 percent (in the same time frame).

reports that the board is basing its standards on what they believe “Wisconsin consumers would find ethical, responsible, and acceptable for institutions choosing to enroll them.” However, for-profit colleges have already submitted letters to the board arguing that the proposed standards are 鈥渁rbitrary and should not be broadly applied to a diverse set of programs, which often enroll underserved populations.鈥

While the federal government鈥檚 鈥溾 rule is similar to Wisconsin鈥檚 proposal, it is unusual to see a state attempt this type of regulatory system. Some states have increased their requirements for online and for-profit institutions鈥攂ut Wisconsin鈥檚 proposal is especially aggressive. For-profits that wish to operate in Washington must receive authorization from the , which considers institutions; 鈥渇inancial stability, business practices, academic programs, and faculty qualifications鈥濃攂ut does not yet hold them to specific graduation or employment standards.

On Wednesday, Wisconsin鈥檚 board voted unanimously to postpone a final decision until a team made of board members, representatives from colleges and universities, and State legislators can review the proposal more thoroughly.听 The team is scheduled to make recommendations to the board in June of 2013.

NIH Proposals Could Impact Biomedical Research

On Friday, the National Institutes of Health (NIH) approved a rough implementation plan for a set of initiatives that could affect biomedical studies and the faculty, postdoctoral,听and student researchers who conduct them.听Three working groups proposed the plan back in June and mean for it to guide, diversify, and improve biomedical research through new grant programs and guidelines.

The 听recommended that the NIH:

  • Help students prepare for careers by providing institutions with additional grants for training and professional development;
  • Encourage graduate students to complete their degrees on-time by capping the number of years they can receive NIH funds;
  • Urge institutions to financially commit to their researchers by slowly reducing the percentage of NIH funds that go toward faculty salaries; and
  • Support the decision-making of prospective graduate students and postdoctoral researchers by asking that NIH-funded institutions provide data on student career outcomes.

The 听was founded after an听NIH听report revealed that black researchers were underrepresented in grant applicant pools and that, when they did apply, they were significantly less likely to receive NIH grants relative to their white counterparts. The听group called for the NIH to:

  • Help bridge diversity gaps by implementing a system of career mentorship 鈥渘etworks鈥 for underrepresented minority students;
  • Support under-funded colleges that have a history of training underrepresented minorities in the sciences by considering them for a 鈥渨ell-funded, multi-year鈥 competitive grant program;
  • Establish a committee to address implicit or explicit biases in the NIH peer review system; and
  • Experiment with 听by removing the names of researchers and their institution.

Lastly, the 听asked that the NIH develop a better framework for information exchange and fund more fellowships and training in statistics and other quantitative areas.

These initiatives may sound familiar as many have been pursued, yet subsequently aborted in the past due to a lack of funding. This time may be no different if Congress fails to resolve the fiscal cliff and 听that could slash the NIH鈥檚 budget by 8.2 percent in the coming year.

MOOC Providers Now Offer Headhunter Services

Massive open online course (MOOC) providers, Coursera and Udacity, are now offering to sell information about high-performing students to employers who have available positions.

Coursera, which is known for working with high-profile colleges, announced its version of the headhunter service on Tuesday. Already some similarly high-profile tech companies, such as Facebook and Twitter, have enrolled in the service. Once an employer signs up, Coursera provides them with a list of students who match the company鈥檚 academic, geographic, or skill-based requirements. If an employer sees a profile they like, Coursera emails the student asking if she or he would like to be introduced to the company. Every introduction costs the employer a flat fee, the revenue of which goes primarily to Coursera. However, 6 to 15 percent of the revenue goes back to whichever college(s) offered the MOOC(s) the student attended.

The Chronicle that Coursera鈥檚 co-founder, Andrew Ng feels “this is a relatively uncontroversial business model that most of our university partners are excited about.” Regardless, Coursera is giving each of its partnering colleges a chance to opt out of the new headhunter service. If a college declines, any and all students enrolled in its MOOCs will be unable to participate in the job-matchmaking program. If a college accepts, its students will still have the option to personally opt out of the service鈥攅ither altogether or only for courses they are unable to complete.

Udacity, which works with individual professors to offer MOOCS rather than entire institutions, offers a similar headhunter program. So far, approximately 350 partner companies including Google, Amazon, and Facebook have already signed up.

Neither Coursera nor Udacity was willing to disclose the price of their respective services, but both MOOC providers said they give employers more than just student grades. They also collect and share data on students who frequently participate in discussion forums and help answer questions from their classmates. Mr. Thrun, of Udacity, said employers often find those “softer skills” to be more valuable than sheer academic performance as they can be better predictors of placement success.

Recent Higher Ed Headlines

Here is a quick look at some recent happenings in the world of higher education:

  • , says a report released today by the Center for American Progress (CAP). The College Scorecard, which President Obama proposed last February, is an online tool to help students compare colleges鈥 costs, completion rates, average student-loan debt, and more.听 The CAP asked focus groups of college-bound high-school students for their opinions on the scorecard鈥檚 design, content, and overall effectiveness. Student responses indicated that they did not understand the scorecard’s purpose; they would like the ability to customize the scorecard according to their interests; they want more information on student-loan debt; and they would prefer seeing four-year graduation rates, rather than six-year rates. The CAP report includes recommendations for improving the readability and usability of not just the scorecard, but of government disclosures in general.
  • 听on Friday by a 245 to 139 vote. The bill would eliminate the 鈥渄iversity visa program,鈥 which currently distributes 55,000 visas per year to people from countries with low rates of immigration to the U.S.听 Those visas would instead go to foreign graduates from U.S. universities who earn advanced degrees in science, technology, engineering or mathematics (STEM). Proponents of the Republican-backed bill say it would keep 鈥渉ighly trained, in-demand鈥 workers in the U.S., boosting the nation鈥檚 economy and preserving its global competitiveness. While the White House and most Democrats support the expansion of STEM visas, they oppose the bill鈥檚 attempt to eliminate the diversity visa program. Consequently, the measure is unlikely to pass the Democrat-controlled Senate.
  • , says Inside Higher Ed. The three governors agree on cost-cutting strategies such as requiring some colleges to offer $10,000 bachelor鈥檚 degrees; limiting tuition increases at flagship institutions; linking institutions鈥 graduation rates to state appropriations; and letting performance indicators, such as student evaluations, determine faculty salaries.听 Although the governors鈥 proposed reforms appeal to some voters, 鈥渁ctions taken by all three have been sharply criticized not only by faculty members and higher education leaders in their states, but also by national leaders, who view the erosion of state funding and increased restrictions on what institutions can do a breach of the traditional relationship between state lawmakers and public colleges and universities.鈥

Higher Ed News Highlights

Here are a few noteworthy headlines from the past few days of higher education news:

  • that would hold tuition rates stable for 鈥渉igh-skill, high-wage, high-demand鈥 degree programs for at least three years.听 Most STEM degrees made the list of majors recommended for this tuition freeze, while core Humanities disciplines (such as history) did not.听 The Governor-commissioned task force responsible for the proposal said, 鈥淭he theory is that students in 鈥榥on-strategic majors,鈥 by paying higher tuition, will help subsidize students in the 鈥榮trategic鈥 majors, thus creating a greater demand for the targeted programs and more graduates from these programs, as well.鈥澨 Supporters feel such an approach will provide taxpayers with the maximum return on their investment and 鈥渋mprove the university system overall.鈥 听听However, the opposition, championed by a number of history professors, argues the strategy would detract from the university鈥檚 prestige and lead to a less 鈥渞ichly educated鈥 workforce.听 Over 1,300 faculty from Florida and beyond have petitioned Florida Governor Rick Scott to seek faculty input for future decisions regarding Florida鈥檚 higher education system.听听This particular form of differential tuition contrasts with the more typical, cost-driven approach, under which students in majors that cost the university more to provide (such as STEM fields) are charged higher tuition than students studying less expensive subjects (like history).
  • to 鈥済enerate the kind of attention and urgency that the circumstances demanded for the nation to keep its competitive edge.鈥 The commission鈥檚 mandate would be to address the many challenges confronting higher education (cost, access, etc.) and help policy makers determine its future.听 Given the drastic demographic, technological, and economic changes already occurring in higher ed, Mr. Gregorian believes now is the appropriate time to discuss nation-wide reform.
  • as a means of bridging the disconnect between what students learn in college and what their future employers actually want them to know. 听听Several Harvard professors, inspired by Germany鈥檚 鈥渄ual system鈥 of providing students with practical job-related skills and theoretical instruction, are working with six states to establish apprenticeship programs.

NSSE Survey Finds Students’ Finances Affect Their Studies

As a means of both acknowledging and analyzing the recession鈥檚 impact on students, this year鈥檚 (NSSE) included a new set of questions asking how students鈥 finances affect their stress and academic activities. Approximately 15,000 first-year and senior students from 鈥渁 diverse group of 43 institutions鈥 responded to the new addendum.听 , which were released last week, indicate that 鈥渇inances were a significant concern for the majority of students.鈥澨

As seen in Table 5 from the official report:

  • The majority of students frequently worried about paying for college and regular expenses.
  • Roughly 1 in 3 students said financial concerns interfered with their academic performance.
  • About 30 percent said they frequently chose not to buy required academic materials due to cost.
  • More students looked into working more hours than into borrowing more money as a way to cover costs.
  • Approximately 3 in 4 students still agreed that college is a good investment.

NSSE Table 5

In addition to these findings, the study found that over 55 percent of full-time seniors said that their choice of major was influenced by factors such as ability to find a job and/or the prospect of career advancement.听 Yet, 89 percent of students overall said the most influential factor in choosing a major was still how well it fit with their talents and academic interests.

American Council on Education Will Review Whether Some MOOCs Deserve College Credit

Controversy has surrounded massive open online courses (MOOCs) since their inception.听 Some believe MOOCs will broaden access to higher education and bring down costs, while others fear the rush to embrace MOOCs may come at the expense of academic quality. To help settle this debate, the (ACE) revealed yesterday a 鈥渨ide-ranging research and evaluation effort鈥 of MOOCs鈥 academic potential, including a pilot project to determine whether some MOOCs should be eligible for college credit.听 The Bill & Melinda Gates Foundation recently awarded ACE nearly $900,000 to pursue these activities鈥攐ne of the foundation鈥檚 13 .

ACE鈥檚 pilot project will examine 5 to 10 MOOCs offered by Coursera (one of the largest MOOC providers.) beginning next year. Teams of faculty will compare these MOOCs to traditional college courses, evaluating their contents, teaching methods, and student engagement. To pass the review and be recommended for credit, Coursera must find a way to authenticate its students鈥 identities鈥攁 difficult task considering thousands of students can register for each course. Coursera hopes to address this challenge by partnering with online proctoring companies that monitor tests remotely and verify students鈥 IDs via special software and webcams.

According to the , if ACE believes a course deserves academic credit, students who want to earn that credit would pay a fee for the proctored exam.听 If those students want a transcript that they can submit to other schools, they鈥檒l need to pay another fee (Coursera鈥檚 offerings are otherwise free).

It should be noted that even if ACE recommends a course for credit, individual colleges must still decide whether to accept those credits. While higher education institutions (as represented by ACE) and the Gates Foundation may believe in the potential of MOOCs鈥, it is unclear whether colleges will actually welcome MOOC transfer credits.

Results of Higher Ed Ballot Initiatives Across the Country

On Tuesday, 11 states voted on ballot measures that could impact higher education. The following table (based on one from ) summarizes how those measures fared.

YES–the measure passed听听听 听听听听听听 NOthe measure failed

Vote Measure Description
CALIFORNIA
YES Prop 30 Would temporarily increase sales and income taxes in order to raise approx. $6 billion in revenue and stave off $963 million worth of cuts to public colleges.
MAINE
NO Question 2 Would allow an $11.3 million bond issue to fund capital for a diagnostic facility at the University of Maine.
MARYLAND
YES Question 4 Would let children of illegal immigrants pay in-state tuition rates provided they meet certain conditions.
MICHIGAN
NO Proposal 2 Would let graduate students form unions and bargain collectively.
MISSOURI
NO Prop B Would raise cigarette taxes and use the revenue to create a Health and Education Trust Fund. About 30 percent of revenue would go to higher education.
MONTANA
YES LR-121 Would require proof of citizenship for a person to receive certain state services, including attending Montana’s public colleges.
NEW JERSEY
YES Question 1 Would let the state issue a $750 million bond for buildings and upgrades at public and private colleges.
NEW MEXICO
YES Question C Would authorize a $120 million sale for certain higher education repairs and improvements.
OKLAHOMA
YES Question 759 Would ban affirmative action programs in the state, including their use in public colleges’ admissions policies.
RHODE ISLAND
YES Question 759 Would give Rhode Island College up to $50 million for its health and nursing program facilities.
WASHINGTON
NO SJR 8223 Would allow 91探花and WSU to invest publicly generated revenue (parking fees, indirect cost reimbursement) in corporate stock.
YES Initiative 1185 Would renew the requirement of a two-thirds legislative vote to create or raise taxes, making new revenue generation more difficult for programs including higher education.

Supreme Court Hears Case on Imported Textbooks

The U.S. Supreme Court heard oral arguments on Monday in a pivotal copyright-infringement case over whether textbooks from foreign markets can be imported to the U.S. and resold without the publisher’s permission. The Court鈥檚 decision in the case, , may have major consequences for publishers, academic libraries, museums, and others who resell, lend, or display copyrighted material made and purchased outside the United States.

The case arose when Supap Kirtsaeng, a U.S. college student originally from Thailand, re-sold textbooks that his friends and relatives shipped to him from abroad. In response, publisher John Wiley & Sons sued him for copyright infringement. Mr. Kirtsaeng鈥檚 defense centers on the first-sale doctrine, which permits the buyer of a copyrighted work to lend or resell it without permission. However, the states that the first-sale doctrine applies only to goods “lawfully made under this title,” which may or may not include foreign products. In August 2011, the U.S. Court of Appeals for the 2nd Circuit upheld a lower court’s decision that only domestic works are protected under the first-sale rule, nevertheless the Supreme Court may have a different ruling.

As the reported, much of Monday鈥檚 discussion involved what lawyers call the 鈥減arade of horribles鈥濃攖he worst-case scenarios that could result from a ruling in favor of the publishers. For example, libraries could theoretically be prohibited from distributing foreign-made books, owners of foreign cars could be barred from re-selling them as used, and more. The publisher鈥檚 attorney stated that there might be provisions allowing for some gifts and re-sales, such as the 鈥渇air use鈥 doctrine which lets copyrighted works be reproduced if they are to be used for research, critique, or similar purposes. However, Chief Justice John G. Roberts Jr. countered, 鈥淚t seems unlikely to me that, if your position is right, a court would say, it鈥檚 a fair use to resell the Toyota, it鈥檚 a fair use to display the Picasso.鈥

Justice Elena Kagan, considered by many to be the crucial swing vote in the case, actively questioned both sides, but did not reveal her leanings. Otherwise, the justices appear divided, according to . A ruling in the case is expected by the end of the court’s term, in June.

Pell Grant Changes Hit Transfer Students Hardest

One of several recent has made it harder for some students to finish school and earn a degree, according to . Effective July 1st this year, the federal government decreased the duration of Pell eligibility from 18 semesters to 12 semesters as a means of both cutting costs and incentivizing students to graduate on time. While most students take less than 12 semesters to earn their bachelor鈥檚 degree, existing Pell recipients (who expected to receive 18 semesters of eligibility) were not exempted when the changes took place.

Of the estimated 62,000 students affected by the change, colleges say the hardest hit were transfer students and students who have attended some college, but never earned a degree. More specifically, many impacted students seem to be those who:

  • Left school before graduating, but have returned to complete their degree;
  • Transferred, or 鈥渟wirled,鈥 between multiple schools鈥攁 growing trend in higher education;
  • Enrolled with a for-profit institution, but transferred elsewhere before graduating; and/or
  • Changed programs multiple times within the same school.

According to an 鈥渋nformal tally鈥 by the California State University system, about 6,100 of the system鈥檚 students (4 percent) lost Pell Grant eligibility because of the new 12-semester limit.

Since some students who lose eligibility may not be able to afford to continue their education and earn a degree, this change could conflict with the government鈥檚 emphasis on improving graduation rates and increasing the number of degree-holders. However, as Congress gears up to deal with impending sequester cuts, the financial benefits of these types of tough decisions are increasingly likely to outweigh the nonfinancial costs.